Key Value Drivers

When considering the value of your company, there are basic value drivers. While it is difficult to place a specific value on them, they give the company a competitive advantage in the market. What are your company’s key value drivers?

Value Driver Low Medium High
Business Type Little Demand Some Demand High Demand
Business Growth Low Steady High & Steady
Market Share Small Steady Growth Large & Growing
Profits Unsteady Consistent Good & Steady
Management Under Staffed Okay Above Average
Financials Compiled Reviewed Audited
Customer Base Not Steady Fairly Steady Wide & Growing
Litigation Some Occasionally None in Years
Sales No Growth Some Growth Good Growth
Industry Trend Okay Some Growth Good Growth

The possible value drivers are endless, but a close look at the ones above should give you some idea of where your business stands. Don’t compare against businesses in general, but specifically consider the competition.

It is important for a business owner to identify and understand the value drivers of their company. They give the company a competitive advantage which makes it extremely appealing to a potential buyer.

As part of your exit strategy, what can you do to improve your company?

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